To prepare your business taxes, we've provided a few resources to get you ready.
Get your business ready for taxes
Gather your income and expenses
First, gather your income and expense documents. This could be from bank statements, credit card statements, invoices, or receipts.
Address how to pay yourself
If you made an election to be treated as an S corporation, it's important that you address how you pay yourself, such as by issuing a reasonable salary through payroll, taking cash distributions out of the LLC's bank account, or a combination of both. The correct choice depends on many factors you will want to consider and discuss with your tax expert. Take a look at these articles for helpful tips:
Record your transactions
When recording transactions, only include business income and expenses. You can do this year-round to ease the burden during tax season.
Personal expenses are not deductible on your personal taxes. It's important not to commingle your personal and business accounts to ensure your books and records are accurate.
Don't have QuickBooks Online?
That's OK. Go here for a Business Income & Expense worksheet to help you record your transactions so that you are ready for tax time.
If you are using QuickBooks Online, follow these steps
1. Make sure all your income and expense transactions are recorded. Here are some links to help you do this:
- How to connect your bank and credit card accounts
- How to categorize your transactions
- Enter and manage expenses
2. Has everything been recorded? The next step is to “reconcile your accounts."
3. Now that you are reconciled, it's time to review your Profit and Loss Report. This video below will help you get started:
Connect with your tax expert
Reach out to a tax expert regularly—especially toward the end of the year—to discuss how to get the best possible tax outcome and other potential recommendations, such as making quarterly estimated tax payments.
